(Answered) The inverse market demand in a homogeneous-product cournot

Economics

The inverse market demand in a homogeneous-product Cournot duopoly is P = 100 – 2(Q1 + Q2) and costs are C1(Q1) = 12Q1 and C2(Q2) = 20Q2.

a. Determine the reaction function for each firm.

b. Calculate each firm’s equilibrium output.

c. Calculate the equilibrium market price.

d. Calculate the profit each firm earns in equilibrium.

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Microeconomics, Economics

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